Morocco says it will generate 17,500 new jobs by year end

Morocco said it will generate 17,500 new jobs, part of a transition appropriation bill that will cover the second half of this year.

According to an official study, joblessness rose from 12.9% to 15.1% between the first and second quarters of 1999.

Morocco's minister in charge of relations with the parliament, Mohamed Bouzoubaa, standing for the government spokesman, said the bill, debated by the weekly session of the government council, will provide for new fiscal moves to boost the economy, which currently faces a second consecutive dry year.

The draft bill, that is yet to be approved by the bicameral parliament, will exempt hotels from income taxes for 5 years, suppress tax on real-estate profit and cut trade tax.

The bill will also target a 44.44% increase in public investments, Bouzoubaa said, adding that the July-December bill will tackle drought effects as a top priority.

Morocco decided recently to import 52 million quintals of cereals and earmarked a $650 million to back the rural world.

Under a 1996 constitutional amendment, Morocco's fiscal year was changed from January-December to June-July to allow bill drafters take into account the results of the cereal harvest.

The six-month transition bill will pave the way for the return to the normal fiscal year, January-December.